Art Laffer criticizes Biden's economic policy as GDP drops in Q2: This is a 'recipe for future inflation'

Former economic adviser to President Reagan Art Laffer warned President Biden's economic policy and the Fed's actions have created a "good recipe for future inflation." On "Mornings with Maria," Thursday, Laffer pointed to the recent GDP numbers and unpacked the role future inflation and government policy would play in bringing the GDP up. 

GDP SHRANK AT REVISED 0.6% RATE IN SECOND QUARTER, SIGNALING US REMAINS IN TECHNICAL RECESSION

ART LAFFER: The Fed should, in fact, set interest rates to their own level. Price controls never work, and trying to fix the interest rate is not the right way to go. Let it go like Paul Volcker did. Left higher interest rates, make bonds attractive. Don't force the Fed to buy bonds to keep those rates low. Their balance sheet is already very close to $9 trillion, and that gives us a huge monetary base for allowing inflation to continue. And then you have the fiscal policy stimulating the economy. The student loan thing is just amazing. But you put in all that stimulus and you wonder why you have excess money. And then you have stimulus to buy goods and services, and then you are causing people to leave the labor force. And with a slow economy, you've got less goods and more money. I think that's a good recipe for future inflation. And they just are not taking these issues seriously to do the Draconian thing that must be done that Paul Volcker did and Reagan did, by the way, with the supply of goods. 

WATCH THE FULL VIDEO BELOW: